In a strategic move to restructure its capital and enhance shareholder value, ETHZilla, an Ethereum treasury company listed on Nasdaq, sells $40M in ETH. On October 24, 2025, the company liquidated approximately 11,900 ETH, valued at about $40 million, when Ethereum was priced at around $3,338 per coin. This sale is part of a larger $250 million share buyback plan, designed to close the gap between its stock price and its net asset value (NAV).
The company embraced the idea of buying back its outstanding shares for $250 million to align its stock price with its NAV. The ETH sale yielded $12 million, which ETHZilla used to buy 600,000 shares on the open market at an average price of $20 per share. According to executives, this buyback indicates management’s confidence in the company’s long-term fundamentals. The company will continue to buy shares as long as its market rate is lower than its NAV.
On the initial day of trading following the announcement, ETHZilla’s stock increased by 14.5%. This rally was a positive indicator that investors were confident in the company’s strategic change. Trading volume took off, and analysts viewed the move as a bold innovation in corporate treasury management. However, a few traders cautioned that selling ETH during a period of market weakness could censure its future returns if Ethereum rises again. ETHZilla’s management did not take such considerations into account, focusing primarily on stability and shareholder returns.
Does ETHZilla’s approach mark a new era for corporate crypto treasuries?
ETHZilla’s approach represents a significant move towards corporate crypto treasuries. The firm is leveraging its Ethereum reserves as a source of finance, as opposed to passively holding digital assets. This method allows the company to maintain its share price while simultaneously controlling exposure to risk markets. Other crypto-oriented companies, such as SharpLink and MicroStrategy, have followed a similar model with Bitcoin reserves. ETHZilla’s Ethereum system has positioned it as a corporate leader in digital treasury management.
This reallocation comes with both opportunities and risks. Buybacks can lift earnings per share and indicate corporate strength. Nevertheless, selling Ethereum during an unstable period might minimize future price increases. Ether has dropped approximately 13% in the last week, trading around $3,330, slightly below pre-sale levels. Analysts believe ETHZilla’s strategy may work provided ETH remains above $3,000. However, they caution that a further drop might put the program into question.
